Question

Define Price elasticity of supply. State how is it measured with the help of percentage method?

Answer 1

$<p style="color:orange;font-family:cursive;background :black;font-size:25px;">.Key points. Price elasticity measuresthe responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.</p>$

Answer 2

Answer:

Key points. Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.